Using Fuzzy TOPSIS and Balanced Scorecard for Kaizen Evaluation

Abstract

Background: Kaizen is a very important continuous improvement technique; however, measuring kaizen results/benefits have not been clearly and comprehensively addressed by the literature. Objectives: This paper aims to propose a kaizen measuring system by integrating a Balanced Scorecard (BSC) and a Fuzzy Technique for Order Performance by Similarity to Ideal Solution (Fuzzy TOPSIS). Methods/Approach: Three research instruments were distributed to kaizen experts to allocate kaizen benefits into the four BSC perspectives. The best measures of kaizen benefits were determined by employing the Fuzzy TOPSIS technique. Results: The results present a kaizen performance evaluation system where the benefits were allocated into the four BSC perspectives, and the best measure for each kaizen benefit was chosen using fuzzy TOPSIS. Conclusions: The research contributes to the literature by proposing a kaizen measurement system that will pair each benefit of using kaizen with BSC perspectives and measures, thus expanding the advantages of adopting kaizen to any sector or industry.